Your answer is partially correct. Waterways is thinking of mass-producing one of its special-order sprinklers. To do so would increase unit variable costs for all sprinklers by an average of $0.70. The company also estimates that this change could increase the overall number of sprinklers sold by 10%, and the average unit sales price would increase $0.20. Waterways currently sells 493,000 sprinkler units at an average unit selling price of $26.20. The manufacturing costs are $7,004,760 variable and $1,754,947 fixed. Selling and administrative costs are $2.682.690 variable and $802,950 fixed. If the average unit sales price per sprinkler did not increase when the company began mass-producing the special-order sprinkler, what would be the effect on the company? (Round ratio answer to 0 decimal places, eg. 5% and profit answer to 2 decimal places, eg 5,275.25) by Decrease 3 Contribution margin ratio $ by Decrease Profit eTextbook and Media Attempts: unlimited S

Q&A Education